INTERNET INEQUALITY: BROADBAND ACCESS IN NYC

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1 Office of the Comptroller Scott M. Stringer Bureau of Policy and Research December 2014 POLICY BRIEF INTERNET INEQUALITY: BROADBAND ACCESS IN NYC Office of the Comptroller City of New York One Centre Street, New York, NY Phone: (212) stringertheory.com Office of the Comptroller Scott M. Stringer

2 Office of the Comptroller Access to the Internet is the fourth utility of the modern age as central to our daily lives as electricity, gas and water. Yet high-speed Internet and the connections it facilitates to education, employment, culture, and commerce remain beyond the reach of millions of New Yorkers. This is a critical moment for s digital future. On December 8th, the Franchise Concession and Review Committee (FCRC) will hold a public hearing on the City s proposal to transform our network of 20th century payphones into the world s largest public WiFi network. In addition, regulators at the state and federal level are reviewing the proposed merger of Comcast and Time Warner Cable, and evaluating whether the merger is in the public interest. These events present unique opportunities to expand the quality, reach, and affordability of Internet access throughout the five boroughs. The Census Bureau recently released the results of the 2013 American Community Survey (ACS) which, for the first time ever, asked questions about computer ownership and Internet access. This report, from the Office of Comptroller Scott M. Stringer, analyzes data from the ACS to chart the scope of the Digital Divide in New York City. The data shows that millions of New Yorkers do not have computers and/or broadband at home, and that there are disparities based on age, education level, employment status, race and neighborhood. 27 percent (730,000) of NYC households lack broadband Internet at home percent (533,000) of NYC households do not have a computer at home. 2 More than one-third (34 percent) of households in the Bronx lack broadband at home, compared to 30 percent in Brooklyn, 26 percent in Queens, 22 percent in Staten Island, and 21 percent in Manhattan. 40 percent of New Yorkers with less than a high school education lack broadband at home compared to 11 percent of New Yorkers with a bachelors or advanced degree. 34 percent of people outside the workforce lack broadband at home, while 21 percent of unemployed New Yorkers lack access. The 15th Congressional District (Bronx) has the highest percentage of households without broadband at 36 percent, while the 12th Congressional District (Upper East Side/Queens) has the fewest households without broadband at 15 percent. 21 percent of NYC youth (0-18 years) lack broadband at home, while 45 percent of seniors (65+) lack broadband at home. 27 and 26 percent of Black and Hispanic households, respectively, lack broadband at home, compared to 21 percent of White households and 15 percent of Asian households. 1 Internet Inequality: Broadband Access NYC December 2014

3 Office of the Comptroller As shown in the map below, nearly half (47 percent) of households in Brooklyn Community District 12 (Borough Park, Kensington, and Ocean Parkway) lack broadband at home, while only 11 percent of households in Manhattan Community Districts 1 and 2 (Battery Park City, Greenwich Village, and SoHo) lack access. Two major causes of Internet inequality in are the high cost and poor quality of broadband compared to other cities. Bringing broadband into more New Yorkers homes requires addressing both speed and affordability. As noted in the Open Technology Institute s (OTI) 2014 Cost of Connectivity Report, consumers from Seoul and Paris to Kansas City and Chattanooga, are able to access a 1 gigabit connection for less than $70 per month. 3 By comparison, the top speed available for consumers in is half the speed of those cities (500 megabits), at a cost of $ a month. 4 In other words, consumers with the fastest available broadband pay at least four times as much to download material at half the speed as citizens of other global cities. OTI analyzed the best deals under $40/month, and ranked 20th among 24 global cities. New York s Time Warner Cable 15 megabit connection for $39.99/month paled in comparison to San Francisco s Webpass service which offers 200 megabits for $30/month. New York also failed to measure up to gigabit services across Europe and Asia. Internet Inequality: Broadband Access NYC 2

4 Office of the Comptroller As the New York Times summarized, At nearly every speed, Internet access costs more in the United States than in Europe. 5 The findings of this report reinforce the importance of ensuring that the City takes concrete steps to improve the quality, availability, and affordability of high-speed Internet across the five boroughs. This includes leveraging the LinkNYC proposal with an eye towards expanding high-speed Internet access in a manner that is reliable, equitable, and affordable for all our neighborhoods. ENDNOTES 1. The ACS defines broadband as Internet Service other than dial-up service, including digital subscriber line (DSL), cable modem, fiber-optic, mobile broadband, and satellite service. 2. The ACS defines computer as including desktops, laptops, netbooks, notebook computers, handheld computers, smart mobile phones, and other handheld wireless computers. It does not include GPS devices, digital music players, or other electronic devices with limited computing capabilities, such as smart appliances Chattanooga has built one of the nation s fastest municipal fiber networks a model that OTI states, tend to deliver better value to their customers when compared on a price-per-megabit basis to competing cable and telecom providers in their own cities. As Comptroller Stringer stated in his 2012 Start-up City report, while the cost/complexity of a citywide municipal fiber network in New York may be prohibitive, it is essential that the City explore ways to take advantage of existing public assets to lay fiber. Indeed, while the old pneumatic tube system that once carried mail throughout the five boroughs has been dismantled, there are other options for laying fiber, including working with the MTA to leverage the fiber build out in its tunnels and exploring whether ConEd s underground network could support a fiber plant that could yield a smart grid (as in Chattanooga or Lafayette, Louisiana). 4. The report notes that Time Warner Cable recently began upgrading its highest speed offerings in NYC, potentially offering 300 Mbps for a price of $ While this would represent a dramatic improvement in quality and price, it would still leave access beyond the reach of low-income New Yorkers All data is drawn from the U.S. Census Bureau s 2013 American Community Survey. 3 Internet Inequality: Broadband Access NYC December 2014

5 Office of the Comptroller APPENDIX 7 City Totals (Households) Total: 3,084,861 Has a computer: 2,551,959 With dial-up Internet subscription alone 17,635 With a broadband Internet subscription 2,251,572 Without an Internet subscription 282,752 No computer 532,902 Type of Internet at Home (Households) Total: 3,084,861 With an Internet subscription: 2,296,434 Dial-up alone 18,123 DSL: 231,330 With mobile broadband 67,051 Without mobile broadband 164,279 Cable modem: 1,339,487 With mobile broadband 467,344 Without mobile broadband 872,143 Fiber-optic: 301,376 With mobile broadband 111,367 Without mobile broadband 190,009 Satellite Internet Service: 22,458 With mobile broadband 8,483 Without mobile broadband 13,975 Two or more fixed broadband types, or other: 291,042 With mobile broadband 141,130 Without mobile broadband 149,912 Mobile broadband alone or with dialup 92,618 Internet access without a subscription 112,521 No Internet access 675,906 Internet Inequality: Broadband Access NYC 4

6 Office of the Comptroller Age Total: 8,226,741 Under 18 years: 1,772,498 Has a computer: 1,609,066 With dial-up Internet subscription alone 6,876 With a broadband Internet subscription 1,401,672 Without an Internet subscription 200,518 No computer 163, to 64 years: 5,425,873 Has a computer: 4,911,945 With dial-up Internet subscription alone 25,765 With a broadband Internet subscription 4,408,011 Without an Internet subscription 478,169 No computer 513, years and over: 1,028,370 Has a computer: 667,475 With dial-up Internet subscription alone 10,749 With a broadband Internet subscription 570,125 Without an Internet subscription 86,601 No computer 360,895 Education Level Total: 5,677,038 Less than high school graduate or equivalency: 1,085,728 Has a computer: 776,794 With dial-up Internet subscription alone 6,511 With a broadband Internet subscription 648,610 Without an Internet subscription 121,673 No computer 308,934 High school graduate (includes equivalency), some college or associate s degree : 2,538,348 Has a computer: 2,124,162 With dial-up Internet subscription alone 15,418 5 Internet Inequality: Broadband Access NYC December 2014

7 Office of the Comptroller With a broadband Internet subscription 1,859,848 Without an Internet subscription 248,896 No computer 414,186 Bachelor s degree or higher: 2,052,962 Has a computer: 1,959,899 With dial-up Internet subscription alone 12,395 With a broadband Internet subscription 1,833,972 Without an Internet subscription 113,532 No computer 93,063 Employment Status Total: 6,641,520 In the civilian labor force: 4,298,901 Employed: 3,882,804 Has a computer: 3,581,797 With dial-up Internet subscription alone 18,240 With a broadband Internet subscription 3,252,152 Without an Internet subscription 311,405 No computer 301,007 Unemployed: 416,097 Has a computer: 376,016 With dial-up Internet subscription alone 1,982 With a broadband Internet subscription 330,153 Without an Internet subscription 43,881 No computer 40,081 Not in labor force: 2,342,619 Has a computer: 1,793,120 With dial-up Internet subscription alone 17,090 With a broadband Internet subscription 1,545,094 Without an Internet subscription 230,936 No computer 549,499 Internet Inequality: Broadband Access NYC 6

8 Office of the Comptroller Race White Total: 3,579,114 Has a computer: 3,129,997 With dial-up Internet subscription alone 18,842 With a broadband Internet subscription 2,833,464 Without an Internet subscription 277,691 No Computer 449,117 Hispanic Total: 2,390,252 Has a computer: 2,033,944 With dial-up Internet subscription alone 8,663 With a broadband Internet subscription 1,763,921 Without an Internet subscription 261,360 No Computer 356,308 Black Total: 2,007,171 Has a computer: 1,715,077 With dial-up Internet subscription alone 13,714 With a broadband Internet subscription 1,458,894 Without an Internet subscription 242,469 No Computer 292,094 Asian Total: 1,121,127 Has a computer: 1,035,076 With dial-up Internet subscription alone 5,592 With a broadband Internet subscription 953,366 Without an Internet subscription 76,118 No Computer 86,051 7 Internet Inequality: Broadband Access NYC December 2014

9 Office of the Comptroller Borough The Bronx Queens Brooklyn Manhattan Staten Island Total: 481, , , , ,629 Has a computer: 379, , , , ,311 With dial-up Internet subscription alone 2,096 5,564 5,605 3, With a broadband Internet subscription 316, , , , ,079 Without an Internet subscription 60,856 62,143 90,990 54,949 13,814 No computer 101, , ,982 91,337 23,318 Congressional District Percent of households with broadband connection at home Congressional District 4 (113th Congress) 83.9 Congressional District 5 (113th Congress) 73.9 Congressional District 6 (113th Congress) 74.9 Congressional District 7 (113th Congress) 69.8 Congressional District 8 (113th Congress) 68.8 Congressional District 9 (113th Congress) 72.9 Congressional District 10 (113th Congress) 78.9 Congressional District 11 (113th Congress) 77.4 Congressional District 12 (113th Congress) 85.2 Congressional District 13 (113th Congress) 67.6 Congressional District 14 (113th Congress) 72.9 Congressional District 15 (113th Congress) 64.2 Congressional District 16 (113th Congress) 76.7 Community District Percent of households with broadband connection at home NYC-Bronx Community District 1 & 2--Hunts Point, Longwood & Melrose PUMA 66 NYC-Bronx Community District 3 & 6--Belmont, Crotona Park East & East Tremont PUMA 60.1 NYC-Bronx Community District 4--Concourse, Highbridge & Mount Eden PUMA 63.2 NYC-Bronx Community District 5--Morris Heights, Fordham South & Mount Hope PUMA 67.9 NYC-Bronx Community District 7--Bedford Park, Fordham North & Norwood PUMA 62.3 NYC-Bronx Community District 8--Riverdale, Fieldston & Kingsbridge PUMA 77.4 NYC-Bronx Community District 9--Castle Hill, Clason Point & Parkchester PUMA 64.8 NYC-Bronx Community District 10--Co-op City, Pelham Bay & Schuylerville PUMA 76.2 NYC-Bronx Community District 11--Pelham Parkway, Morris Park & Laconia PUMA 69 NYC-Bronx Community District 12--Wakefield, Williamsbridge & Woodlawn PUMA 71.6 NYC-Manhattan Community District 1 & 2--Battery Park City, Greenwich Village & Soho PUMA 88.7 NYC-Manhattan Community District 3--Chinatown & Lower East Side PUMA 67.4 NYC-Manhattan Community District 4 & 5--Chelsea, Clinton & Midtown Business District PUMA 85.2 Internet Inequality: Broadband Access NYC 8

10 Office of the Comptroller Percent of households with broadband connection at home NYC-Manhattan Community District 6--Murray Hill, Gramercy & Stuyvesant Town PUMA 87.7 NYC-Manhattan Community District 7--Upper West Side & West Side PUMA 84.1 NYC-Manhattan Community District 8--Upper East Side PUMA 88.5 NYC-Manhattan Community District 9--Hamilton Heights, Manhattanville & West Harlem PUMA 76.3 NYC-Manhattan Community District 10--Central Harlem PUMA 65.9 NYC-Manhattan Community District 11--East Harlem PUMA 61.5 NYC-Manhattan Community District 12--Washington Heights, Inwood & Marble Hill PUMA 72.4 NYC-Staten Island Community District 1--Port Richmond, Stapleton & Mariner s Harbor PUMA 72.6 NYC-Staten Island Community District 2--New Springville & South Beach PUMA 77.8 NYC-Staten Island Community District 3--Tottenville, Great Kills & Annadale PUMA 84.5 NYC-Brooklyn Community District 1--Greenpoint & Williamsburg PUMA 70.4 NYC-Brooklyn Community District 2--Brooklyn Heights & Fort Greene PUMA 83 NYC-Brooklyn Community District 3--Bedford-Stuyvesant PUMA 61.3 NYC-Brooklyn Community District 4--Bushwick PUMA 66.6 NYC-Brooklyn Community District 5--East New York & Starrett City PUMA 68 NYC-Brooklyn Community District 6--Park Slope, Carroll Gardens & Red Hook PUMA 85.3 NYC-Brooklyn Community District 7--Sunset Park & Windsor Terrace PUMA 76.9 NYC-Brooklyn Community District 8--Crown Heights North & Prospect Heights PUMA 66 NYC-Brooklyn Community District 9--Crown Heights South, Prospect Lefferts & Wingate PUMA 73.1 NYC-Brooklyn Community District 10--Bay Ridge & Dyker Heights PUMA 78.5 NYC-Brooklyn Community District 11--Bensonhurst & Bath Beach PUMA 75.1 NYC-Brooklyn Community District 12--Borough Park, Kensington & Ocean Parkway PUMA 53.1 NYC-Brooklyn Community District 13--Brighton Beach & Coney Island PUMA 58.1 NYC-Brooklyn Community District 14--Flatbush & Midwood PUMA 68.4 NYC-Brooklyn Community District 15--Sheepshead Bay, Gerritsen Beach & Homecrest PUMA 74.7 NYC-Brooklyn Community District 16--Brownsville & Ocean Hill PUMA 60.5 NYC-Brooklyn Community District 17--East Flatbush, Farragut & Rugby PUMA 71.5 NYC-Brooklyn Community District 18--Canarsie & Flatlands PUMA 79 NYC-Queens Community District 1--Astoria & Long Island City PUMA 76.7 NYC-Queens Community District 2--Sunnyside & Woodside PUMA 80.6 NYC-Queens Community District 3--Jackson Heights & North Corona PUMA 68.8 NYC-Queens Community District 4--Elmhurst & South Corona PUMA 72.3 NYC-Queens Community District 5--Ridgewood, Glendale & Middle Village PUMA 71.1 NYC-Queens Community District 6--Forest Hills & Rego Park PUMA 78.1 NYC-Queens Community District 7--Flushing, Murray Hill & Whitestone PUMA 70.3 NYC-Queens Community District 8--Briarwood, Fresh Meadows & Hillcrest PUMA 75.7 NYC-Queens Community District 9--Richmond Hill & Woodhaven PUMA 78.4 NYC-Queens Community District 10--Howard Beach & Ozone Park PUMA 79.9 NYC-Queens Community District 11--Bayside, Douglaston & Little Neck PUMA 83.3 NYC-Queens Community District 12--Jamaica, Hollis & St. Albans PUMA 70.7 NYC-Queens Community District 13--Queens Village, Cambria Heights & Rosedale PUMA 78.4 NYC-Queens Community District 14--Far Rockaway, Breezy Point & Broad Channel PUMA Internet Inequality: Broadband Access NYC December 2014

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12 NEW YORK CITY COMPTROLLER SCOTT M. STRINGER MUNICIPAL BUILDING 1 CENTRE STREET, 5TH FLOOR NEW YORK, NY PHONE (212) FAX (212) Office of the Comptroller City of New York One Centre Street, New York, NY Phone: (212) stringertheory.com